http://www.foxnews.com/politics/010401/ic_shuster.sml

Sources: Possible Coverup at DOJ
Thursday, January 4, 2001
By David Shuster

WASHINGTON — Senior staff working for Attorney General Janet Reno have
threatened to fire an independent counsel investigating a possible coverup
at the Justice Department, Fox News has learned.


AP/Wide World

Henry Cisneros admitted lying to the FBI.


Independent Counsel Dave Barrett led the investigation of former Clinton
housing secretary Henry Cisneros, who admitted lying to the FBI. According
to sources, for the last 10 months Barrett has been presenting his grand
jury with new evidence alleging that officials at the Justice Department
improperly tried to influence actions by the Internal Revenue Service.

Barrett was warned by senior Justice Department officials to halt his
investigation, but DOJ officials told Fox News that they did not threaten to
fire him.

Barrett's original focus was on Cisneros, who pleaded guilty to a
misdemeanor for lying during an FBI background check.

During his investigation, Barrett uncovered evidence of possible tax fraud
by Cisneros. But Justice Department officials, along with the IRS, said that
aspect of the Cisneros record was beyond the independent counsel's
jurisdiction. After looking at the evidence themselves, the Justice
Department and IRS both refused to pursue the matter.

According to well-placed sources, last year a top lawyer within the IRS
alleged that senior Justice Department officials were attempting to protect
Cisneros. The IRS employee, who is now a whistleblower for the independent
counsel, has reportedly testified that justice officials pressured the IRS
in other cases as well.

Allegations have been made before that the IRS backed off of President
Clinton's friends and stepped up cases against his opponents.

But the investigation at the Washington courthouse marks the first time that
any of these allegations have been reviewed by a federal grand jury. Lawyers
say dozens of IRS employees have testified in recent months. And Fox News
has learned that inspectors general at the IRS and Treasury Departments are
helping with the case.

So far the investigation has not yielded evidence strong enough to warrant
any charges. But sources indicate the probe of the Justice Department still
has a long way to go. When contacted about this story by Fox News, Barrett
refused to comment.

Sources Possible Coverup at Justice Department.url

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